Natural Blends Inc Essay
Here we have 3 processes to consider, the Extraction, Filtration and Concentration.
Extraction has a maximum capacity of 20,000 lbs/hr
Filtration has a maximum capacity of 20,000 lbs/hr
Concentration has a maximum capacity of 18,000 lbs/hr
For Extraction we have a setup time of 20 minutes.
For Filtration we have a setup time of 30 minutes after 90 minutes of filtration.
For Concentration there is no setup time loss.
The processes are simultaneous in nature, and there is no buffer in between. So, if there is a shutdown of a single process, the entire system shuts down.
Now, if we do consider a 2 hour time slot, then there will be effectively production for 1 and ½ hours due to filtration setup time:
For …show more content…
The cost of improvement will be $20,000 for Filtration and $10,000 for extraction. Hence total cost will be $30,000.
Assumption: Since the amount of different sizes of oranges processed should be equal in a week and each size should be processed at least once per day, we can consider the following schedule;
DAY 0-2hrs 2-4 hrs 4-6 hrs 6-8 hrs
1 B A A C
2 C B B A
3 A C C B
4 B C C A
5 C B B A
6 A C C B
Where A, B and C represents large, medium and small oranges respectively, such that A=B=C
4a. The setup change in Extraction will happen for three times.
4b. As seen in the above schedule the setup is changed for 3 times.
4c. The quantity of oranges of particular size which will be processed before switching to other size will be 54,000 pounds.
The maximum time same size of oranges will be processed is 4 hrs. The production for 2hr cycle is 27,000lbs, hence the maximum quantity is 54,000lbs.
4d. The total amount of juice concentrate processed is 108,000 lbs. as the production for 1 cycle of 2 hrs is 27,000lbs and there are 4 such cycles hence total production will be 108,000 lbs